ConMed agrees to pay 27¢ per share, or $22.5 million, for Viking Systems and its 3D surgical imaging system.
ConMed (NSDQ:CNMD) and Viking Systems (OTC:VKNG) aid they've agreed on a $22.5 million merger, aiming to fill the gap between 2D systems and the 3D imaging systems that come with sophisticated surgical robot systems.
The 27¢-per-share price represents a 42% premium over VKNG's 19¢ closing price yesterday.
News of the deal sent CNMD shares up slightly today to $26.91 as of about 1:20 p.m. VKNG shares were trading at 26.3¢, up 38.9%.
"The Viking line of 3-D high-definition surgical video products represents a strategic addition to our general surgical imaging franchise," ConMed president & CEO Joseph Corasanti said in prepared remarks. "Viking is at the forefront of 3-dimensional HD surgical imaging, and we believe that merging this technology with our established worldwide marketing and sales teams will expand the use of superior surgical visualization benefiting both surgeons and their patients."
The deal, expected to close during the 4th quarter, will being August 27 with a tender offer. As of August 13, about 43% of VKNG's shares had been committed for tender.
The Viking system "is believed to be the only stand-alone 3D laparoscopic vision system available today that is both FDA-cleared and CE-marked," according to a press release, and is "uniquely positioned to fill the gap between conventional 2D-HD systems and the 3D-HD visualization systems that are available only as a part of high-cost robotic systems."
ConMed said it expects to transfer its 2-D surgical video research and marketing team from Santa Barbara, Calif., to Viking's Westborough, Mass.-based operation.
In a separate release, Viking reported lower 2nd-quarter sales but reduced losses for the 3 months ended June 30. Sales were $2.2 million during the quarter, down 13.6% compared with Q2 2011, but net losses were also down 3.4%, to $890,000.
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